Global PE fundraising reaches $431b in 2013 – Preqin
Private equity firms raised $431 billion globally in 2013, up 13% on 2012 levels, largely thanks to robust activity in North America and Europe. It is the highest amount in any year since the global financial crisis.
The previous high point was 2008 when fundraising reached $688 billion.
According to Preqin, North America-focused funds that made final closes in 2013 received commitments totaling $266 billion, up 33% year-on-year. Capital raised for funds targeting regions outside of Europe and North America came to $61 billion, down from $86 billion in 2012.
The largest fund to close in 2013 was CVC European Partners VI, which raised EUR10.5 billion ($14 billion).
The strong showing by North America and Europe counterbalanced weakening LP appetite for Asia-focused funds. AVCJ Research's provisional figures for 2013 show that fundraising for the region - including final and incremental closes - came to around $41 billion, compared to $54.2 billion in 2012. This is the lowest annual total since 2009.
As of January 2014, a record 2,084 private equity funds are in the market globally, seeking to raise an aggregate $750 billion. A total of 1,949 funds were seeking $797 billion in commitments at the start of 2013.
Preqin also found that dry powder - capital committed to private equity funds but still be invested - stood at a record $1.074 trillion by mid-December 2013, surpassing the previous high of $1.067 trillion seen at the end of 2008. Over 9% of this dry powder is attributed to funds with vintages prior to 2008.
Aggregate buyout values have been relatively flat over the last three years, reaching $264.4 billion in 2011, $263.8 billion in 2012 and $265.8 billion through mid-December 2013.
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